EMP completes new share issuance

IDX-listed PT Energi Mega Persada Tbk. (EMP) announced on Monday that it had completed new share issuance without pre-emptive rights.

The new shares issued were 4,464,253,069 shares (10 percent of the outstanding shares prior to the new shares issuance), which were priced at Rp 100/share. The new shares issued were 51 percent subscribed by Welby Capital Limited, and 49 percent purchased by Blossom Global Assets Inc. Both subscribers are the corporate clients of PT Samuel Sekuritas Indonesia who acts as the custodian in this transaction.

The new shares issued were listed in the Indonesia Stock Exchange (IDX) on July 27, 2015, and the proceed of Rp 446,425,306,900 (gross before subscription fee) from the sale of such shares have been well received.

Imam Agustino, the CEO of EMP, said,?As explained earlier, we plan to use the over Rp 446 billion proceed to fund the business expansion and working capital requirement of EMP and its subsidiaries. We hope to maintain 5 to 10 percent production growth this year (from the previous year).?

Didit Ratam, EMP?s Director, further explained, ?Part of the proceed will also be used to settle some of outstanding payables. Consequently, EMP will show improved liquidity ratio going forward.?

EMP operates proved and probable oil & gas reserves of 158 million barrels equivalent as per March 31, 2015. EMP also produced 11,718 barrels of oil per day and 217 million cubic feet of gas per day in the first quarter of 2015.

Editing by Johannes Simbolon